We are in a business of Industrial Sewing Machines, catering to the Garment + Leather Industry.
On behalf of Foreign Machinery manufacturers, we explain the products to leather/garment manufactures in India, and procure business for our Foreign suppliers. Once the correct machines are identified and prices negotiated between the machine manufacturer and the local end user, we issue a quotation.
The quotation will give Terms and Conditions, based on which the Foreign supplier will issue his final quotation and supply the goods to the Indian customer.
The business is done direct between the foreign manufacture and the Indian end user.
The invoicing will be made by the foreign machinery manufacturer and payment made by the Indian end user directly to the foreign and in foreign exchange.
We have meagerly promoted the business of a foreign supplier. We have provided services for their benefit end use.
In the course of business , from time to time we advise to our foreign supplier, market situation, Government Policies, Competitor activities, political situation, import/ export regulation and amendments, duty structure, improvements/ suggestion to be incorporated in their machine design to suit customers requirement, tropical conditions and in the nature there of…………
For rendering these services, we get a commission from the foreign company in convertible foreign exchange.
I want to know whether we are applicable to SERVICE TAX or not
CAclubindia
